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Ending earning limits on Social Security will help seniors, society

Presidential election years are a mixed blessing. On the one hand, we find ourselves smothered by campaign speeches, television commercials and excessive news coverage of primaries and conventions.

On the other hand, election years have a way of prompting politicians to get around to doing things for their constituents they should have done a long time ago.

A case in point is President Clinton's recent announcement that he will support a Republican measure that'll help hundreds of thousands of older Americans by removing earning caps that restrict Social Security payments.

The president's change of heart is an election year turnaround that could boost Vice President Al Gore's presidential stock among senior citizens -- a coveted bloc of voters who faithfully show up at the polls in large numbers.

Under current law, retirees are denied $1 in Social Security benefits for every $3 they earn over $17,000 each year.

A pending change in the law will hike that earnings ceiling to $30,000 by 2002.

But, Social Security officials say more than 800,000 older people would still lose a portion of their benefits because of the earnings limit.

Republicans have fashioned a bill to repeal earnings limits altogether so that working retirees get the full Social Security benefits they've earned, no matter how much they make.

The bill was scheduled for fast track consideration and could come up for a vote in March. Recognizing the political liability to be incurred by continuing to oppose the proposal, Clinton last week said he'll sign the measure into law if it clears Congress.

To his credit, Clinton has supported removal of earning limits before, but insisted the move be part of an overall Social Security reform plan.

His new position is welcome news to the older Americans who want to continue working beyond the age of 62 or 65 when Social Security benefits become available.

It also should be seen as good news to millions of younger Americans who have a lot to gain by keeping productive older individuals in the work force, earning wages and continuing to make payments into the system.

When Social Security was first implemented in the 1930s, one of its purposes was to get older Americans out of offices and factories and thus open up jobs for younger people during the Great Depression when unemployment rates were astronomical.

Today, the opposite is true in the job market. There's a labor shortage and we need skilled, experienced and knowledgeable veteran workers to fill positions.

Penalizing these potential workers by reducing their Social Security benefits discourages them from continuing to be contributing workers. A report by the Brookings Institute several years ago projected the work effort of retirees over 62 would increase by 30 percent to 40 percent if the earnings test were eliminated.

It is estimated that repealing the earnings cap would cost roughly $22.7 billion over 10 years. This expense could be covered by raising the retirement age by four months per year until early retirement becomes age 66 and normal retirement is age 69.

Those numbers are more in line with current demographics that show Americans are staying healthy longer and live longer than when the 62 and 65 ages were adopted.

Whatever his motives, we're pleased to see that Clinton has agreed to go along with the complete removal of the earnings cap that restricts Social Security benefits to older Americans. It's a positive move that is good for senior citizens and good for the economy.